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  • Category: Miscellaneous
    Points:7

    Should parents keep their accounts separate from the child's earnings?

    As parents, people take care of their children, their education, and other support till the children complete their education and get a job. When children start earning then they bring their salary home every month and sometimes give it to their parents for spending. Some parents might accept it but many tell the children to manage their finances themselves and for that matter even differentiate between the money that the child is earning versus their earnings.

    What is your take on that? Should parents mix up the earnings or keep the accounts separately? Please share your experiences or views on the matter.
  • #776747

    Points:4
    The author is right. It is good to have a separate account for the child for their future. In some houses, I am seeing separate Hundis they keep for individual children in the house by writing their names on that. The parents themselves put cash in rupees or coins before them by saying the need. The children also got trained to put the cash by themselves when they get some cash from visitors or relatives.
    If they keep separate bank account for them they can deposit the amount collected in the Hundis also.

  • #776748

    Points:6
    That depends on the financial condition of the family. My father was a clerk. The family is a big family and his income is less. So as the elder son, whatever I was earning, I was completely spending for the family. My father used to spend my complete earnings on family expenses. After my marriage also the same situation continued. Till all my brothers settled and started earning, the same situation continued.

    My two sons are staying with me. I have no financial issues and I have sufficient income. So I never took money from my sons. I asked them to save whatever was possible. All household experiences are from me only. I have not taken any money from them as my financial position is good. But I have suggested to them not to waste the money and save as much as possible.

    A friend of mine is also well off. But he takes money from his sons. He saves the same and says his children may spend the money if it is left with them. That depends on the mentality and the nature of the individual. t
    drrao
    always confident

  • #776755

    Points:7
    I strongly believe that even in a joint family accounts should be kept separately. The reason for this is that all the members of the family should be financially accountable and understand the worth of money and its importance for the family's welfare and progress. It is a fact that every person becomes financially responsible as soon as one starts earning money oneself. And at that juncture, if his earning is mixed with the family's earnings then he will not know what was exactly his expenditure and what was the saving and he might spend money sometimes even carelessly.

    Moreover, the earnings of different members in a family may differ significantly and mixing will create unnecessary confusion and sometimes bad feelings in the minds of even the close family members.

    I learnt this from my father who kept accounts separately in respect of every person and reminded me that that was the contribution made by him and this was by others so every member knew it and remained alert about any spending and incurred it only after talking with each other.
    Knowledge is power.

  • #776758

    Points:4
    What Umesh said is correct. But in a joint family, some may be earning more and some may be earning less. We can't expect equal contribution from all. In such a case, the person who is not contributing much may feel inferior even though he may be contributing to the family in other ways. I know a family where one brother is earning less and the other brother is earning more. But the brother who is earning more also used to give less to the family expenses. Their mother used to feel and suffer a lot due to financial problems. So sometimes keeping separate accounts may lead to problems also. But if all are equally earning then maintaining expenses by each member of the family will be better to know individual commitments towards the family.
    drrao
    always confident

  • #776761

    Points:4
    Dr Rao you have explained it quiet clearly but the point is that a person who is earning less must understand the importance of money and try to restrict his expenses according to his income and not to the combined income of the family. What I mean is he should particularly not go for the luxury items. In a joint family the basic things everyone will get the same like same food and same standard of living but when it comes to luxuries like travelling or purchasing costlier gadgets etc then individual income comes in it's way.
    I agree that such things would bring complications in a joint family but after marriage when people start living separately then that difference of earning becomes much clear to the person.
    Knowledge is power.

  • #776763

    Points:4
    All the family members should have their own accounts and in no case, a mix up is to be allowed. Money is itself a sensitive issue and no one can know how the members of the family can react differently in a given situation. The head of the family must insist that the account holder has the full right to take care of his account and in no circumstances, his earned money should be used for such matters for which he is having some ambiguity.
    In case of celebration of marriage in the family or illness of a family member, each of the earning member would voluntarily spare money to manage the situation provided there is the broad understanding among the family members.

  • #776766

    Points:2
    In my opinion, it is better to keep separate accounts of earnings and should not mix with the other account. We should also make them to be independent financially. They should understand financial management and have a habit of saving some money every month. Also, keep an eye on the expenditures made by the children and guide them whenever necessary.
    Honesty is the best policy.

  • #776768

    Points:4
    Umesh, what you said is correct. But when we are in a common family, the children expect the same treatment for all. They never understand that their father is earning less and the father of other children is earning more. This is where problems start and joint families are not able to exist and nuclear families are increasing.
    I faced similar problems in my childhood. My father and uncle ( Father's Brother) contribute equally to the expenses. But we are three children and my uncle has only one child. So problems cropped up and my father decided to get the family divided. Money is the root cause of all those problems.
    drrao
    always confident


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